MRK Holdings, Inc. (9980) AI Stock Analysis

• Market Cap: ¥9.12B
• Dividend Yield: 1.11%
• Average Volume (3M): 97.64K
• Price to Earnings (P/E): 35.8
• Beta (1Y): 0.32
• Revenue Growth: 8.01%
• EPS Growth: 13.50%
• Country: JP
• Employees: 1,788
• Sector: Consumer Cyclical
• Sector Strength: 68
• Industry: Apparel - Manufacturers
• EPS (TTM): 4.98
• Shares Outstanding: 101,295,074
• 10 Day Avg. Volume: 59,370
• 30 Day Avg. Volume: 97,636
• PEG Ratio: 1.19
• Price to Book (P/B): 0.61
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥92.00
• Price Target Upside: 2.22% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 74 Outperform
• Price Target: ¥100.00 ▲(11.11%Upside)

MRK Holdings, Inc. benefits from strong technical indicators and a solid financial foundation, but faces challenges with profitability and valuation. The stock's positive price trends and stable market momentum are significant strengths, while high P/E ratio and low net margins are key risks.

MRK Holdings, Inc. Business Overview & Revenue Model

Company Description

MRK Holdings, Inc. (9980) is a diversified holding company that operates across various sectors including technology, healthcare, and consumer goods. The company focuses on strategic investments in innovative companies and emerging technologies, providing a platform for growth and operational synergies. MRK Holdings is committed to enhancing its portfolio through active management and leveraging market opportunities, aiming to deliver long-term value to its stakeholders.

How the Company Makes Money

MRK Holdings, Inc. generates revenue primarily through its investment activities in subsidiary companies and joint ventures. The company earns income from dividends, interest, and capital gains on its investments. Key revenue streams include performance-based revenue from the growth of its portfolio companies, management fees from providing strategic and operational support, and sometimes, consulting services related to its areas of expertise. Significant partnerships with technology firms and healthcare innovators also contribute to its earnings, as they facilitate access to new markets and innovative solutions, enhancing overall profitability.

MRK Holdings, Inc. Financial Statement Overview

Summary

MRK Holdings shows strong revenue growth and gross profit margins, supported by a solid balance sheet with low leverage. However, the profitability metrics such as net profit margin and EBIT margin are weak, and there are concerns about cash flow stability.

Income Statement

MRK Holdings has shown consistent revenue growth over the years, with the latest annual increase standing at 8%. The gross profit margin remains robust at approximately 75%, indicating strong cost management. However, the net profit margin is relatively low at 1.2%, suggesting that high operational or other costs may be impacting profitability. The EBIT margin has decreased to 2.2% from previous periods, which could be a concern if not addressed.

Balance Sheet

The company maintains a healthy equity ratio of 72%, indicating strong shareholder equity relative to total assets. The debt-to-equity ratio is low at 0.1, showcasing minimal reliance on debt, which enhances financial stability. Return on equity is modest at 1.7%, which suggests room for improvement in generating profits from shareholder investments.

Cash Flow

MRK Holdings has significantly improved its free cash flow from a negative position in the previous year to a positive $1.43 billion, marking a robust turnaround. The operating cash flow to net income ratio is favorable, reflecting strong cash generation relative to net income. However, the volatility in past cash flows and the high variability in financing activities suggest potential risks in cash flow sustainability.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	21.15B	19.58B	19.54B	18.83B	18.33B
Gross Profit	15.79B	14.76B	14.84B	14.34B	14.11B
EBITDA	1.27B	1.02B	1.25B	918.79M	990.51M
Net Income	254.16M	225.27M	514.14M	423.42M	121.81M
Balance Sheet
Total Assets	20.20B	22.02B	18.05B	17.34B	18.01B
Cash, Cash Equivalents and Short-Term Investments	2.12B	2.56B	2.56B	5.29B	7.28B
Total Debt	1.54B	3.67B	175.36M	125.93M	732.95M
Total Liabilities	5.57B	7.46B	3.80B	3.55B	4.65B
Stockholders Equity	14.63B	14.56B	14.25B	13.80B	13.36B
Cash Flow
Free Cash Flow	1.43B	-1.15B	-802.37M	-298.09M	2.41B
Operating Cash Flow	1.71B	-849.03M	-264.54M	101.72M	2.94B
Investing Cash Flow	442.01M	-2.41B	-2.23B	-1.29B	-1.00B
Financing Cash Flow	-2.60B	3.27B	-239.05M	-782.97M	424.17M

MRK Holdings, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 90.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9980, the sentiment is Positive. The current price of 90 is above the 20-day moving average (MA) of 88.60, above the 50-day MA of 86.78, and above the 200-day MA of 85.90, indicating a bullish trend. The MACD of 0.98 indicates Negative momentum. The RSI at 58.11 is Neutral, neither overbought nor oversold. The STOCH value of 83.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9980.

MRK Holdings, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3123	79 Outperform	¥6.82B	8.08		3.01%	-9.85%	-8.43%
3320	79 Outperform	¥8.81B	6.06		3.15%	1.86%	-13.39%
8127	76 Outperform	¥8.10B	53.88		4.06%	-4.37%	-54.08%
9980	74 Outperform	¥9.12B	35.84		1.11%	8.01%	13.50%
3571	70 Neutral	¥10.31B	25.09		5.10%	-6.22%	-84.85%
Sector *	60 Neutral	€8.55B	7.71	-14.37%	4.76%	1.65%	-51.94%
9885	47 Neutral	¥5.83B	―		2.16%	-12.30%	-274.85%